Search found 601 matches

by jhogue
Sun May 09, 2021 10:04 am
Forum: Cash
Topic: TreasuryDirect 0% certificate of indebtedness as alternative to MMFs
Replies: 2
Views: 88

Re: TreasuryDirect 0% certificate of indebtedness as alternative to MMFs

Certificates of Indebtedness are guaranteed 0% securities designed to facilitate electronic payroll plan purchases of Treasury securities or US savings bonds. I have never purchased them because I only use my TreasuryDirect account to make direct purchases of US savings bonds with electronic transfe...
by jhogue
Fri May 07, 2021 9:01 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

@ Dieter:
Buy what you can. You won't regret it.

If you aren't happy with an I-bond you buy right now, you can always treat it like a 1-year CD and sell it at the end of the one year lock-up period.
by jhogue
Thu May 06, 2021 10:29 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

I'm not in the income bracket where I need to worry about paper iBonds (or even what the max is for electronic!), but, thanks for the info on the later i-Bond rate. I did put some $ into i-bonds for the first time in a while. If you are so rich that you don't personally need your quota of paper I-b...
by jhogue
Wed May 05, 2021 2:40 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

@ Vinny:

Be sure to check that box.
by jhogue
Wed May 05, 2021 2:35 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

jhogue, Quick question... Aren't you retired? If so, how are you pulling off the tax refund paper I-Bond deal each year? I think you've written that you overpay your tax. But that must be by thousands of dollars, right? I am retired. I do a draft of my taxes at the end of January. I then compute ho...
by jhogue
Wed May 05, 2021 12:49 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

@ Vinny: Sorry, I have never tried H&R Block software. Turbotax shows Balance/Refund on the front page of its instructions and in the IRS Form 1040. See IRS Form 1040-SR (2020) page 3: -Refund Line 34: If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid -L...
by jhogue
Wed May 05, 2021 12:29 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

@ Vinny: 1. I-bonds that you buy in your Treasury Direct account after 1 May 2021 will yield 3.54% for the next 6 months. 2. In addition to the above, you can buy $5,000 in I-bonds with your 2020 tax refund. They will also yield 3.54% for the next 6 months. IRS form 8888 has purchase instructions. I...
by jhogue
Wed May 05, 2021 11:55 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

Fed cant buy ibonds and push down that yield? In a word, no. As you imply, the Fed could adjust the yield on, for instance, 1-year Treasury bills by selling them at auction or buying and selling on the secondary market. The yield on new I-bonds is fixed and guaranteed by the Treasury twice each yea...
by jhogue
Tue May 04, 2021 8:53 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

1. I submitted my IRS Form 1040 via Turbotax yesterday, along with my request for tax refund in the form of this year's quota of paper I-bonds.Given the IRS's problems issuing refunds last year, I will be watching to see how smoothly I-bond issuance proceeds this year. 2. I share the nostalgia for p...
by jhogue
Mon May 03, 2021 11:17 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

TreasuryDirect has set the new fixed rate for I bonds at 0.0%. Combined with the previous announced variable rate, the composite rate for newly purchased I bonds will be 3.54% for the next 6 months, as expected. Because the yield is guaranteed not to fall below zero, the yield for the next 12 months...
by jhogue
Fri Apr 30, 2021 12:04 pm
Forum: Permanent Portfolio Discussion
Topic: Institutional diversification (Fidelity worries)
Replies: 26
Views: 828

Re: Institutional diversification (Fidelity worries)

I am no prepper either, but a few years in the Boy Scouts taught me to "be prepared."

No plan can handle every possible contingency. I am suggesting an emergency fund with multiple layers and some diversification should see you through the most-- and the most likely-- emergencies.
by jhogue
Fri Apr 30, 2021 11:45 am
Forum: Permanent Portfolio Discussion
Topic: Institutional diversification (Fidelity worries)
Replies: 26
Views: 828

Re: Institutional diversification (Fidelity worries)

Safety deposit box unlocks mechanically with two keys: the banker has one and I have the other.
by jhogue
Fri Apr 30, 2021 7:08 am
Forum: Permanent Portfolio Discussion
Topic: Institutional diversification (Fidelity worries)
Replies: 26
Views: 828

Re: Institutional diversification (Fidelity worries)

I think safety comes in layers. I have a readily accessible emergency fund outside of my brokerage account (held at Fidelity and insured by Lloyds of London). I have a safe deposit box in a local bank. I know my local banker and he knows me. While my local bank account is FDIC-insured, it is just as...
by jhogue
Fri Apr 23, 2021 4:25 pm
Forum: Gold
Topic: Why isn't gold moving?
Replies: 43
Views: 2079

Re: Why isn't gold moving?

@jalanlong: As Ayn Rand used to say, you need to examine your premises: There isn't anything imprudent about a 25% cash position. At most, a small negative real yield on cash is a premium paid for liquidity. At least, there are strategies available to achieve and maintain a positive real yield on ca...
by jhogue
Wed Apr 21, 2021 7:32 pm
Forum: Cash
Topic: Negative 1 and 3 Month Treasury Rates
Replies: 35
Views: 4520

Re: Negative 1 and 3 Month Treasury Rates

I think it is quite simple: Buffett is more concerned with the return of his money than he is with the return on his money. In other words, safety and liquidity must come before yield.
by jhogue
Tue Apr 20, 2021 9:59 am
Forum: Cash
Topic: Best Low Cost ETF for Cash
Replies: 33
Views: 1263

Re: Best Low Cost ETF for Cash

@ barrett: Congratulations on your first world problem. A few suggestions, if I may: -Create a spreadsheet from now through final end of I-bond maturity. It could show you that it might make sense to cash some of them in early to smooth out that “lumpiness” of redemption years. -One way to stem tax ...
by jhogue
Sun Apr 18, 2021 12:30 pm
Forum: Cash
Topic: Best Low Cost ETF for Cash
Replies: 33
Views: 1263

Re: Best Low Cost ETF for Cash

@ barrett: -I like the idea of “re-loading”: I also switched from EE bonds to I bonds after our daughter graduated from college. So far, it seems like a workable plan. -In the short term, the upcoming minimum variable interest rate guarantees a minimum one year yield on 1 May 2022 of 1.77%. That bea...
by jhogue
Sat Apr 17, 2021 11:16 am
Forum: Cash
Topic: Best Low Cost ETF for Cash
Replies: 33
Views: 1263

Re: Best Low Cost ETF for Cash

@ Barrett, My Cash is currently split as follows: 20% of Cash in tax exempt accounts (FDLXX in Roths) 18% of Cash in tax deferred accounts (FDLXX in T-IRA) 37% of Cash in tax deferred I-bonds 25% of Cash in taxable accounts (FDLXX in Fidelity brokerage) -I am currently holding more Cash than usual i...
by jhogue
Fri Apr 16, 2021 6:29 pm
Forum: Cash
Topic: Best Low Cost ETF for Cash
Replies: 33
Views: 1263

Re: Best Low Cost ETF for Cash

@ ppnewbie: 1. Fluctuation in net asset value is fine for stocks, LTTs, and gold-- in fact, that is what the PP investor should want and expect from those volatile assets. Cash, though, is in the PP to create a pool of safe and liquid funds. A money market fund is designed for principal stability, u...
by jhogue
Fri Apr 16, 2021 4:36 pm
Forum: Cash
Topic: Best Low Cost ETF for Cash
Replies: 33
Views: 1263

Re: Best Low Cost ETF for Cash

FDLXX did close to new investors when interest rates collapsed in 2020. It has since re-opened. The yield has been close to miniscule, but it remains all invested in US Treasury-issued securities. Yes, the ER is outrageous, but I would rather have a Treasury money market fund than an ETF. @ppnewbie:...
by jhogue
Fri Apr 16, 2021 3:43 pm
Forum: Cash
Topic: Best Low Cost ETF for Cash
Replies: 33
Views: 1263

Re: Best Low Cost ETF for Cash

Can you hold FDLXX in your 401k plan? It is less likely to have a net asset value fluctuation than the ETFs, and (as mathjak indicates) part of the expense ratio is currently being waived by Fidelity.
by jhogue
Thu Apr 15, 2021 9:05 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

Really appreciate your I-bond updates and generally keeping these great financial tools top-of-mind around here, jhogue. Thanks, Xan. 1. I continue to regard I-bonds as the “swiss army knife” of Cash. They come with multiple unique and cool functions, such as: -30 years federal tax deferral -30 yea...
by jhogue
Tue Apr 13, 2021 3:52 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

Re: New I-bond rate: 3.54%

Vinny, 1. You are correct. Every tax filer has until May 15 2021 to file their 2020 tax form with the IRS this year. An extension form can be returned with the $5,000 overpayment in addition to any tax that you may already owe. I use Turbotax software and have found filing an extension with my overp...
by jhogue
Tue Apr 13, 2021 12:39 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 31
Views: 926

New I-bond rate: 3.54%

Tipswatch has announced that the new variable component of I-bonds will reset to 3.54% on May 1, 2021. Even if the new fixed rate is announced as 0%, that means that the composite rate for the next six months of I-bonds is guaranteed to be at least 3.54%. 1. If you have not yet purchased your quota ...
by jhogue
Wed Apr 07, 2021 5:03 pm
Forum: Cash
Topic: Negative 1 and 3 Month Treasury Rates
Replies: 35
Views: 4520

Re: Negative 1 and 3 Month Treasury Rates

The HBPP prescribes a Treasury money market fund for safety and liquidity, not yield. Chasing yield in cash is not necessary and can potentially lead to problems with safety and liquidity at the moment that you can least afford it. BTW, the nominal yield of a 1 year Treasury zero stands at -0.01% to...